BETTER FINANCE welcomes the opportunity to contribute to the review of the Markets in Crypto-Assets Regulation (MiCAR), while offering preliminary views on the broader regulatory challenges arising from digitalisation, tokenisation and distributed ledger technology (DLT). We regard MiCAR as an important foundation for crypto-asset regulation, but believe its implementation and potential review should address emerging market practices, interpretative uncertainties and observed actual gaps in retail investor protection. More broadly, we welcome digital innovation insofar it offers opportunities to improve market access, reduce unnecessary intermediation and support more integrated European capital markets. These benefits should be demonstrated through lower costs, greater transparency, interoperability and enforceable investor rights, rather than easier access to (increasingly complex) financial products alone.
Our contribution also places particular emphasis on clear information, identifiable responsibility and effective investor safeguards. MiCAR's white-paper regime represents an important first line of protection, yet its practical accessibility, scope and associated liability provisions raise concerns, particularly where crypto-assets reach retail users without an identifiable party responsible for asset-level disclosure. We therefore advocate clearer regulatory interpretations and for regulators to contemplate requiring a short, standardised Token/Coin Information Document to complement white papers and address information gaps where these are not required. Further priorities include proportionate conduct safeguards, transparent custody and redemption arrangements, and effective supervision and redress.
Looking beyond the strict crypto-assets framework, we stress that technology neutrality must not become a means of circumventing established financial-sector protections. In particular, tokenised securities, hybrid products, DeFi arrangements and other emerging structures should be assessed according to their substantive economic characteristics, legal rights and risks. Ultimately, we call for regulatory adaptation to preserve the potential of innovation while ensuring that digital finance delivers tangible improvements in financial market integrations and transparency to ensure investor outcomes, legal certainty and trust in European financial markets – elements we deem essential to truly align with the objective a Savings and Investment Union.
See also BETTER FINANCE’s complementary response to the “targeted consultation on the MiCAR review”, providing granular feedback on the evolution of digital asset markets and regulatory frameworks, alongside our preliminary policy views and recommendations.
** Read & Download the Consultation Response **